The decision follows a high-level meeting chaired by the Deputy Chief Minister (Housing) on March 13, 2026, where multiple demands from mill worker unions were discussed.

Background: A 40-Year-Old Housing Promise

The issue dates back to the 1982 textile mill strike, after which several mills shut down across Mumbai. Workers and their families were promised housing within the city limits.

In 2024, the government had already approved a policy to provide homes to eligible mill workers and their heirs in the Mumbai Metropolitan Region. However, availability within Mumbai city itself remains a major challenge.

What Has the Government Done Now?

To move things forward, the government has constituted a committee under the leadership of the Additional Chief Secretary (Housing).

Key Members of the Committee:

• Additional Chief Secretary, Housing Department (Chairperson)
• Additional Chief Secretary, Urban Development Department representative
• Additional Chief Secretary, Finance Department representative
• Additional Chief Secretary, Labour Department representative
• Vice President & CEO of Maharashtra Housing and Area Development Authority
• Chief Officer of Mumbai Housing Board (Member Secretary)

What Will the Committee Do?

The committee will:

• Examine all possible options to provide housing within Mumbai
• Review land availability, policy frameworks, and redevelopment possibilities
• Prepare a comprehensive report with recommendations
• Submit proposals to the government for final decision

Regular meetings will be conducted to fast-track the process.

What Does This Mean for Mill Workers?

Hope for Housing Within Mumbai

For decades, many mill workers have been offered homes in distant suburbs. This move reopens the possibility of getting homes within city limits, closer to workplaces and social networks.

Better Livability

Living within Mumbai ensures:

• Better connectivity
• Access to jobs and services
• Improved quality of life

Potential Value Upside

If homes are allocated within Mumbai, the asset value for beneficiaries will be significantly higher compared to peripheral locations.

Impact on Mumbai Real Estate

This development could have wider implications:

1. Unlocking Land in Prime Areas

Mill lands are located in some of Mumbai’s most valuable zones. Any housing solution here could reshape land use dynamics.

2. Policy Shift Toward In-City Rehabilitation

The government may prioritize in-situ or nearby rehabilitation, instead of pushing beneficiaries to far suburbs.

3. Increased Role of MHADA

With Maharashtra Housing and Area Development Authority involved, execution could move faster with a structured approach.

The Bigger Picture

This move signals a renewed push by the Maharashtra government to resolve legacy housing issues while balancing:

• Land constraints
• Urban planning challenges
• Social justice commitments

If executed effectively, it could set a precedent for resolving other long-pending rehabilitation cases in Mumbai.

Also Read: HC Exposes SRA-Developer Collusion in Worli STP Land Grab

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Mumbai | October 15, 2025: In a landmark decision, the Maharashtra Government has directed that all additional development charges collected under Slum Rehabilitation Authority (SRA) projects be deposited into the Urban Transport Fund (UTF) — ensuring that real estate redevelopment is directly supporting Mumbai’s urban mobility and infrastructure.

From Slum Redevelopment to City-Wide Impact

SRA projects have long been known for transforming Mumbai’s informal settlements into formal housing. But beyond providing new homes, these schemes generate development charges under Section 124B (2-1A) of the Maharashtra Regional and Town Planning Act, 1966.

Previously, this money was split — with two-thirds going to BMC and one-third retained by the SRA. However, after a 2015 amendment that doubled the development charges, the government has now decided to channel the entire additional amount into the UTF.

This means that as Mumbai’s skyline changes through SRA-led redevelopment, a parallel transformation is being funded beneath the surface — roads, metros, bridges, and transport networks.

The New Rule: 100% Funds to UTF

The government order issued on October 15, 2025, by the Housing Department, clearly states:

• 100% of the increased development charges collected by SRA must be deposited into the Urban Transport Fund.
• The transfer must happen in real-time as collections are made.

By integrating the SRA’s revenue with UTF, the city ensures that money generated by redevelopment goes straight into building public infrastructure, rather than being split across multiple agencies.

Urban Transport Fund: The Engine Behind Mumbai’s Transformation

The Urban Transport Fund (UTF) is a critical financial pool used to support Mumbai’s major infrastructure projects — including metro lines, coastal roads, bridges, and public transport systems.

With hundreds of SRA projects under implementation, the additional revenue stream to UTF is expected to grow significantly, giving the city more fiscal capacity to accelerate urban mobility projects.

Why This Matters

• Linking redevelopment with infrastructure: This policy bridges two major urban challenges — housing for the urban poor and improving transport.
• Sustainable funding: Instead of depending entirely on budgetary allocations, Mumbai’s transport infrastructure will now benefit from a steady, redevelopment-linked funding source.
• Shared urban growth: As developers gain development rights and beneficiaries receive new homes, the city at large benefits through better mobility infrastructure.

Policy in Context

• The government first structured the sharing of development charges through a resolution in 2001, splitting between BMC and SRA.
• In 2015, the charges were increased by 100%, but there was ambiguity about where this extra amount should go.
• Now, through this 2025 order, the entire increased amount will be routed to UTF, aligning redevelopment revenue with infrastructure goals.

Also Read: Will BJP’s Continued Rule Accelerate Slum Redevelopment in Mumbai?

The post 📰 How Slum Rehabilitation Projects Are Quietly Funding Mumbai’s Transport Future appeared first on Square Feat India.

Under the new rules, projects on plots measuring 2,000 sq.m or more will no longer require mandatory approval from the High-Rise Committee (HRC) — a key technical body that has historically scrutinised tall building proposals. Instead, these proposals can now be cleared directly by the Municipal Commissioner, provided they meet structural certification norms.

The Urban Development Department issued this notification on 10 October 2025 under Section 37(1AA)(c) of the Maharashtra Regional and Town Planning (MRTP) Act, 1966.

 Earlier Rule: HRC Approval Was Mandatory for All 120 m+ Towers

Under the previous regulatory framework:

• Any building taller than 120 m, or with a slenderness ratio of 9 or more, had to be referred to the High-Rise Committee.
• The HRC reviewed structural safety, wind impact, fire safety, planning compliance, and overall feasibility.
• Municipal Commissioners could not approve such towers independently, even for standard high-rise designs that routinely passed HRC scrutiny.
• This process often led to months-long delays, as developers waited for committee meetings, site visits, and clearances.

This blanket requirement applied uniformly across Greater Mumbai, regardless of the plot size or complexity of the structure. Even straightforward mid-height towers were stuck in the same bureaucratic pipeline as supertall buildings above 200 m.

 New Rule: Municipal Commissioner Can Clear 120–180 m Towers on Big Plots

The new notification introduces a clear distinction for mid-height high-rises:

• For buildings between 120 m and 180 m in height
• On plots of 2,000 sq.m or more
   Municipal Commissioner is now empowered to grant approval directly, without referring the case to the High-Rise Committee.

However, developers must submit:

• Structural Design and
• Geo-Technical Reports
  certified by two independent experts — either experienced structural engineers or professors from IIT Bombay, SPCE (Andheri), or VJTI (Matunga).

Developers may still opt to take HRC’s advice if they want multiple expert opinions, but it’s no longer mandatory.

For plots smaller than 2,000 sq.m, the old rule still applies — HRC clearance remains compulsory. Similarly, for buildings taller than 180 m, HRC scrutiny continues to be mandatory as before.

 Why This Matters: Faster Redevelopment & Real Estate Boost

This policy shift is particularly significant for Mumbai’s redevelopment-heavy real estate market, where mid-height towers between 120–180 m are increasingly common.

•  Faster Clearances: By bypassing HRC for standard mid-height towers, project approvals could be shortened by several months. This helps redevelopment societies, especially in the eastern and western suburbs, where delays often inflate costs and timelines.
•  Decentralised Power: The Municipal Commissioner now has greater authority, reducing bottlenecks at the state level.
•  Cost Savings: Less time spent waiting for approvals = lower holding costs, faster construction starts, and potentially better cash flows for developers.
•  Redevelopment Acceleration: Many cluster and society redevelopment projects fall within this 120–180 m bracket on larger plots. This could unlock stalled or delayed projects.
•  Predictability: Developers can now plan their projects with greater certainty, knowing approvals are more streamlined for this category.

 Safeguards Remain Intact

While the rule relaxes HRC approval, it maintains structural safety checks through mandatory expert certification. The amendment is also subject to the final outcome of Writ Petition No. 3186/2019 (Urban Design Research Institute vs State), currently before the Bombay High Court.

 The Bigger Picture

Mumbai’s vertical growth has often been slowed not just by land scarcity, but by lengthy approval procedures. By decentralising authority and focusing HRC’s attention on truly complex and supertall buildings, the government aims to balance speed with safety.

With redevelopment driving the city’s housing supply — especially under DCPR 2034 and cluster schemes — this change could become a turning point for faster urban renewal.

Also Read: Fire in Mumbai Highrise, Builder Says Fire Audit Conducted on Oct 1

The post 🏢 Developers Get Relief: 120–180 m Towers on Big Plots No Longer Need High-Rise Committee Approval appeared first on Square Feat India.

Addressing the gathering, Sanjeev Jaiswal (IAS), Vice President & CEO of MHADA, stressed the critical need for robust public-private partnerships to redevelop dilapidated buildings across Mumbai. He highlighted recent regulatory changes aimed at expediting stalled projects, including amendments to Section 91A, which allows MHADA to take over such developments.

“Land scarcity remains a fundamental challenge for Mumbai. The amendment under Section 91A is both timely and necessary. Section 79A now offers fair compensation to landowners, resolving long-standing bottlenecks in cess building redevelopment. Redevelopment must be transparent, viable, and delivered on time. FSI clarity and honest communication are essential to protect tenant rights and ensure project success,” Jaiswal said.

The one-day event facilitated live consultations between developers and societies, offering support in legal, financial, and technical planning for redevelopment. Stakeholders across the spectrum—urban planners, legal experts, architects, and housing society members—engaged in sessions to demystify the redevelopment process.

Boman Irani, President of CREDAI National and CMD of Rustomjee Group, urged societies to prioritise a developer’s credibility over financial allure. “The highest offer is not always the best. Evaluate the developer’s track record and financial capacity. Once you’ve chosen your committee and consultants, trust their process,” he advised, while warning against over-cautious delays.

Domnic Romell, President of CREDAI-MCHI and Director at Romell Group, addressed concerns about financial security, stating, “In today’s RERA-compliant environment, demands for excessive bank guarantees are outdated. Project funds are tightly regulated through escrow accounts. Residents must be aware of their entitlements, like the 35% fungible FSI, and make practical decisions.”

Dhaval Ajmera, Secretary of CREDAI-MCHI and Director at Ajmera Realty & Infra, noted that EODR 2.0 was designed to empower societies. “With over 3,000 societies and 40+ developers participating, our goal is to streamline processes and rebuild trust. Societies now have the resources and guidance to convert aging buildings into secure, modern homes,” he said.

CREDAI-MCHI’s EODR 2.0 concluded with a shared commitment from developers and housing societies to move forward with transparent, efficient, and resident-focused redevelopment practices in Mumbai.

Also Read: CREDAI Pledges to Construct 4000 Green Projects by 2030

The post MHADA Chief Calls for Public-Private Partnership to Accelerate Mumbai’s Redevelopment at EODR 2.0 appeared first on Square Feat India.